2024 (12) TMI 263

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....utinely cases are reaching this Court where refunds for no rhyme or reason are stuck, they are either not being processed or if even processed, they are not being released and in such cases the interest burden on the Government of India / Public exchequer keep mounting every passing day. 2. We are quite seriously concerned with such state of affairs. This for two fold reasons, firstly, that once the tax payer is entitled to the refund and when there are no proceedings against the assessee in that regard are intended to be taken by the Revenue, the refund of the tax amount if any, ought to be immediately granted to the assessee, needs to be the rule. If this is being followed in breach, merely on account of negligence / laxity on the part o....

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....g aggrieved by the Revenue's inaction of the refund being not granted to the petitioner for the Assessment Year 2016-17 and 2013-14, and which was being adjusted for the refund for 2023-24 has approached this Court. The petitioner has claimed that a large sum of refund of Rs. 77,64,71,629/- was not being granted to the petitioner. The petitioner has accordingly prayed for the following substantive reliefs: "a. that this Hon'ble Court be pleased to issue a Writ of Certiorari or any other appropriate writ, order or direction in the nature of certiorari under Article 226 of the Constitution of India calling for all papers and proceedings of the petitioner's case pertaining to Assessment Year 2023-24, AY 2013-14 and AY 2016-17 and after exami....

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....ng to an amount of Rs. 3,10,58,865/- (Rs.3.10 Crores) is due and payable to the petitioner which has not been granted. 7. Mr. Sharma, learned counsel for the revenue states that he would take instructions on the payment of the interest. 8. We may observe that in these situations payment of interest is an unwarranted burden required to be borne by the Government of India. The concern of the Court is on a larger issue, not only in regard to the present proceedings but in several similar proceedings reaching the Court. We are not aware as to whether the income tax department has any procedure of any internal control / checks in such matters, in which the interest burden keeps increasing purely for departmental reasons, which may be either ne....

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....ncerns, we have recorded hereinabove. In such context, we may also observe that if already the rules are not in place, such rules would be required to be framed and if any rules are already framed, as to why such rules are not being strictly adhered, and as to why any mechanism by which accountability needs to be fixed on the particular officers, whose actions are increasing the burden on the Government of India, are concerns required to be immediately looked into. These are the issues and concern which be addressed in the reply affidavit, to be filed by the said respondents. 12. In so far as the affidavits being directed to be filed are concerned, we shall hear the parties on such affidavits on the adjourned date of hearing. We would also....